Gold Futures Settle Sharply Lower
Gold prices fell sharply on Monday and recorded the steepest slide in over seven years, as riskier assets such as equities soared on positive news about a potential coronavirus vaccine.
The U.S. presidential election results, that showed Democrat Joe Biden as the winner, also contributed the surge in global stock markets and dimmed the demand for the safe-haven asset.
The dollar’s notable surge weighed on the commodity as well. The dollar index rose to 92.96, gaining about 0.75%.
Gold futures for December ended down $97.30 or about 5% at $1,854.40 an ounce.
Silver futures for December closed lower by $1.961 at $23.701 an ounce, while Copper futures for December settled at $3.1560 per pound, up $0.0020 from the previous close.
Stock markets across the Asia-Pacific region and Europe closed on an upbeat note.
U.S. stocks are up as well, although technology stocks are somewhat subdued. The Dow is up over 4.7% now and the S&P 500 is higher by about 3%, while the tech-laden Nasdaq is up with a modest gain of 0.5%.
On the vaccine front, Pfizer Inc. and BioNTech SE announced that the first set of results from the phase 3 COVID-19 vaccine trial provides initial evidence of the vaccine’s ability to prevent COVID-19.
The results were based on the first interim efficacy analysis conducted on November 8, 2020 by an external, independent Data Monitoring Committee from the phase 3 clinical study. The Committee has not reported any serious safety concerns.
Meanwhile, coronavirus cases are surging higher in several countries. Several states across the U.S. have reported spikes in new coronavirus infections, and there are concerns the toll may rise further in the next couple of months.
President-elect Joe Biden on Monday announced the members of his coronavirus task force.
“Dealing with the coronavirus pandemic is one of the most important battles our administration will face, and I will be informed by science and by experts,” he said.
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